Italy: Services PMI slightly falls in May
The HCOB Italy Services Purchasing Managers’ Index (PMI) fell marginally to 54.2 in May from 54.3 in April. As a result, the index remained above the 50.0 no-change threshold, but signaled a slightly softer improvement in services-sector business activity compared to the previous month.
Key drivers behind the downtick included a softer increase in new business and activity. That said, growth in new export sales reached a one-year high, reflecting solid external demand for Italian services. This period also saw an acceleration in job creation, the most pronounced in a year, driven by optimism among service providers about future economic and geopolitical improvements, as well as new client wins.
On the topic of prices, while inflationary pressures in terms of input costs have eased, they remained historically elevated. Firms reported higher expenses related to energy, utilities, and staffing, leading to an increase in charges levied by service providers, albeit at the least pronounced rate for four months. Meanwhile, business sentiment improved significantly, reaching its most optimistic level in 27 months, buoyed by expectations of better economic conditions and new business opportunities.